Green credit guarantee for banks
With this guarantee, EKN shares the bank’s risk when issuing a loan for green investments or green operations in Sweden. In the event of a loss, EKN reimburses up to 80 percent of the outstanding credit amount.
The green credit guarantee facilitates access to financing for exporting companies and their subcontractors for investments in green transition of the production or for working capital needs in green business operations.
Credits that can be guaranteed
EKN can issue a green credit guarantee when a lender grants a loan of less than SEK 500 million to a business operation or investment that contributes positively to climate change. The assessment is based on the activities included in the EU taxonomy.
The guarantee is issued to Swedish or foreign banks that issue loans to Swedish exporting companies and their subcontractors - regardless of whether the company is investing in green transition of its business operations or wants to expand its already green business operations. The credit can finance short-term working capital needs as well as constitute an investment credit with the aim of financing increased production capacity, which contributes positively to climate change. The maximum tenor may normally not exceed ten years.
The financing must be separate from the borrower's need for more long-term risk capital or equity needed to, for example, establish itself as an exporter. Normally, EKN cannot guarantee already issued credits, as the guarantee is intended to cover new exposure by the lender.
If the application refers to a loan that does not constitute financing of a specific export transaction, at least 25 percent of the borrower's turnover must consist of exports of Swedish goods or services. If the borrower is a subcontractor, at least 25 percent of the exporting company's turnover must consist of exports of Swedish goods or services.
Apply well before the loan is disbursed, no later than the same day. You must attach a supplementary form from the exporter/subcontractor to the application, where the business operations or business transaction is described. The borrower must also specify how its activity or investment is expected to contribute to climate change and classify it in accordance with the EU Taxonomy. The guarantee is applied for on a specific application form for green credit guarantees.Apply
Based on the application and supplementary form, EKN decides whether the criteria for the Green Credit Guarantee are met and whether the risk is acceptable and then provides you with a quote. The offer is free of charge. The offer shows the premium that EKN charges for the guarantee. EKN normally determines the premium based on the bank's price for the issued loan and must reflect the market price for the transaction.
It is very important that you read through EKN's General Terms and Conditions for Green Credit Guarantees and any additional terms in the offer carefully before the guarantee is issued.
Request for guarantee
When the loan has been paid out and you want to have the guarantee issued, you submit a notification to EKN within ten days of disbursement.
EKN issues the guarantee, and you pay the premium.
Request for indemnification
If you become aware of conditions that increase the risk that the loan will not be repaid on time by the borrower. EKN pays compensation within 30 days from the day on which the complete application for compensation has been received by EKN.
Web page last updated 14 Sep 2022